2002 Session

Budget Amendments - SB30 (Committee Approved)

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Move PPTRA Administration to Tax

Item 285 #8s

Item 285 #8s

First Year - FY2003 Second Year - FY2004
Taxation, Department of FY2003 $991,308 FY2004 $991,308 GF

Page 214, line 1, strike "$44,878,284" and insert "$45,869,592".
Page 214, line 1, strike "$44,878,284" and insert "$45,869,592".
Page 215, after line 51 insert:
"H.1.  Notwithstanding Chapter 35.1 of Title 58.1 of the Code of Virginia, the Department of Taxation shall administer the Personal Property Tax Relief Act of 1998 beginning no later than January 1, 2003.  
2.  Further, the Department shall establish an audit unit that will identify those individuals who have received personal property tax relief for vehicles that do not meet the "Used for nonbusiness purposes" criteria as defined in §58.1-3523 of the Code of Virginia. The Department of Motor Vehicles, the Department of Accounts and all local Treasurers, Commissioners of the Revenue and Directors of Finance, or officials acting in that capacity, shall cooperate with the Department and shall provide all information and assistance necessary, upon request, to fulfill this responsibility.
3.  The Department shall develop a Uniform Personal Property Tax Relief Qualification Certificate for the use of local assessment officials who shall incorporate such certificate in every return of tangible personal property tax due to be filed on or after January 1, 2003.  Such certificate shall be designed to allow a taxpayer to attest to the qualification for reduced assessment of each motor vehicle owned by such taxpayer, both for the current tangible personal property assessment year, and for the immediately prior year.  Failure by a taxpayer to return an executed certificate with the return of tangible personal property shall disqualify the subject motor vehicle(s) for tax relief for both years for which certification is required.  The personal property tax records of localities shall periodically be audited by the Department for the purpose of ascertaining the level of compliance with this provision.  Local Treasurers, Commissioners of the Revenue and Directors of Finance also shall include with personal property tax bills a prominent and clear notice of  a) the limitation in the personal property tax relief program on the use of personal vehicles for business purposes, and b) the statutory conditions under which the personal property tax relief program will not be advanced to the next level.  The Department of Motor Vehicles shall include such notices with all motor vehicle registrations or renewals.
4.  Local Treasurers, Commissioners of the Revenue and Directors of Finance shall not bill the state for personal property tax on any vehicle(s) that lacks the duly executed certificate filed with the return of tangible personal property.  Local Treasurers, Commissioners of the Revenue and Directors of Finance shall notify the State Comptroller of the dollar amount that the state paid in the immediately prior year for any vehicle that is not certified for tax relief, said amount representing an overpayment by the state, and the State Comptroller shall withhold that amount from subsequent payments to the local treasurer for personal property tax relief.  Localities may re-bill responsible taxpayers for the amounts of overpayment that have been withheld by the state.
5.  In addition, the Department shall develop and assist local assessment officials with the implementation of data matching programs designed to aid in the identification of individuals who improperly receive the benefit of reduced assessments of motor vehicles.  Data sources which should be considered for these programs shall include, but need not be limited to, local business licensing records, Department of Motor Vehicle records, employer travel expense records, and the most recent tax year business expense data submitted by Virginia taxpayers with their Virginia tax returns.
6.  Personal property tax payments to any county, city or town whose Treasurer, Commissioner of the Revenue, Director of Finance, or officials acting in that capacity, fail to reasonably cooperate in the implementation of the audit program established by this item shall have personal property tax relief payments withheld until such time as the Tax Commissioner certifies that cooperation has been obtained.
7.  The Department shall report to the Chairmen of the Senate Finance and House Appropriations Committees by November 1st of each year on total overpayments by the state that have been identified for the prior calendar year."

(This amendment transfers the responsibility of the PPTRA to the Department of Taxation and creates an audit program and process. Section 58.1-202 of the Code outlines the duties and powers of the Tax Commissioner including the "supervision of all tax laws of the Commonwealth." )